PM Khan’s tricks of the trade to be tested during China visit

Khan’s visit takes place at a time when both Beijing and Washington are at loggerheads over trade tariffs. (AFP/File)

• Pakistani businessmen hope upcoming trip will generate $3bn toward export relief
• Commerce between both the countries remains low and largely in favor of Beijing

KARACHI: Pakistan’s industrialists and traders said on Wednesday that they expected Prime Minister Imran Khan’s upcoming visit to China to bear fruit in the form of $2-3 billion export relief for the country, an amount which could help Islamabad emerge from its current economic crisis.
Khan will embark on his first official trip to Beijing on November 2 on the invitation of his Chinese counterpart, Li Keqiang, and President Xi Jinping.
“Prime Minister Imran Khan’s first official visit (to China) presents important opportunities for the leaders of the two sides to chart the course for the future development of China-Pakistan relations under the new circumstances,” Lu Kang, China’s Foreign Ministry spokesperson, said on Monday while addressing a press briefing in Beijing.
Kang noted that during Khan’s visit, President Xi Jinping, Premier Li Keqiang and other Chinese leaders will hold talks on important issues. “The two sides will have an in-depth exchange of views on bilateral relations and issues of mutual interest,” he said.
A Pakistani delegation, comprising industrialists and exporters, will be accompanying Khan on his trip, wherein he is expected to take part in China’s first International Import Expo in Shanghai on November 5, as part of the schedule.
“Good news will come from China. Talks on investment, joint ventures, and exports up to $2 to $3 billion to China would be materialized which is not yet taking place,” Almas Hyder, President, Lahore Chamber of Commerce and Industry, told Arab News.  
In a recent interview with Arab News, Pakistan’s Finance minister, Asad Umar, had said that the prime minister “will discuss tariff of items line by line so that they (Chinese) could give us trade concession to increase exports to China”.
“Pakistan should also talk about the export of engineering goods which are negligible in Pakistan but make up 56 percent of global trade,” Hyder said.
Khan’s visit takes place at a time when both Beijing and Washington are at loggerheads over trade tariffs. “Due to a trade war, relocation of industries is expected and Pakistan must capitalize on the opportunities. Pakistan should discuss this with China and they should be encouraged to move their industries into Pakistan,” Hyder suggested.
“Many things have been discussed prior to the visit of PM Khan at the diplomatic level and it is hoped that he will come back with some relief,” Masood Naqi, former Chairman of Qur'angi Association of Trade and Industry, who is accompanying Khan on his visit, told Arab News.  
“We expect that the PM will be able to secure long-term and immediate relief during his visit.  Things would be clear after November 5,” Naqi added. 
Despite calling themselves all-weather friends, the trade between both the countries continues to remain low and largely in the favor of China.
During the fiscal year of 2018, Pakistan was able to export only $1.75 billion worth of goods while China exported products amounting to $11.47 billion to Pakistan, according to data released by the State Bank of Pakistan.
The recent increase in trade volume was due to the Free Trade Agreement (FTA) between both countries and the initiation of the China Pakistan Economic Corridor project, under China’s One Belt One Road initiative.
However, Pakistan and China have yet to sign a deal for the second phase of FTA. “It is hoped that both countries should come up with the decision to sign the second phase of FTA during the visit of PM Khan,” Zahid Qamar, President of Pakistan-China Citizens Association, said.
Meanwhile, Pakistan’s stock market continues to remain bullish following the promise of a bailout package by Saudi Arabia amid speculations about trade improvement and external account assistance from China as well.